As a Melbourne Based furnished property management specialist with almost 200 furnished properties on our rent roll, we see a direct correlation between the tough economic climate, and both longer vacancy periods and more lease breaks. The demand for quality properties is still there, however competition amongst applicants is not. Furnished leasing is totally different to leasing an unfurnished property. Owners of furnished properties should really do their homework on the property management company -review their systems & processes, review their staff to property ratio, review their tenant selection policies, review their tenant induction policies, and review their vacate procedures. Then once you are satisfied with all of these -ask what fees they charge. Never compare agents ( especially furnished managers) on who offers the lowest fees. This is a recipe for major headaches!!

I'm rented out my CBD unit furnished for years - only recently with tenant changeover inspection the managing agent told me the new tenant had asked if we could throw out the old (CRT) TV - OK no-one watches TV anymore, but also the dining table and beds they complained about - she said they now prefer to buy their own furniture and fridges - I was wow - she said these days the CBD (overseas students from China) tenants are all rich - and prefer to buy their own stuff new.

Furnished properties can also attract those from the lower socio-economic demographic who don't have furniture of their own and this can be a recipe for disaster as I found out when an agent recommend I furnish an apartment and rent it out furnished. A bad (and ill-advised) property manager combined with bad tenants is a VERY expensive exercise. Doing it myself from here on in....